Best Gold ETF: Mutual fund investors have confidence in the Gold ETF category. Investments have come in this category for the sixth consecutive month. According to the data of Association of Mutual Funds in India, where investors sold most of the category in September, an investment of Rs 579 crore has come in this category. In August also, 907.9 crore rupees were invested in this category. Talking about this year, so far the net inflow of Rs 5,957 crore has come in this gold ETF category. Experts are assuming that investors’ interest has increased due to the recent returns in Gold ETFs. They are expected to perform better in the future.
Investor’s craze is increasing
People’s craze for gold exchange-traded funds (ETF) is increasing. Investors are being attracted towards the way gold has rallied in the last 2 years. Please tell that this year Gold crossed the record level of 56000. Ajay Kedia, director of Kedia Advisory, says that after a record rise in gold, recently there has been a decline of around 6000 rupees. This correction has also given the opportunity to new investors to take entry in gold. The returns from gold ETFs are very similar to the returns from gold. He says that even now there is not much clear position on the economy. In such a situation, it is expected that gold will remain a safe haven.
Benefits of Gold ETF
It is an open-ended mutual fund, which is based on falling gold prices. Gold ETF gives investors exposure to the gold market. Investing in the long term also gives good returns. Investing in Gold ETFs is less volatile than investing in the stock market. Gold ETF does not have any problem regarding purity due to being in electronic form.
Gold ETFs can be purchased online through a demat account. You can buy and sell it whenever you want. You can also start a Gold ETF with 1 gram ie 1 Gold ETF. So it is easy to invest in it.
Long-term capital gains have to be repaid on gold ETFs. Gold ETFs can also be used as security to take loans. On physical gold, you have to pay the making charge. But this does not happen in Gold ETFs.
Best Four Funds
1. HDFC Gold Exchange Traded Fund
- 1st, 3rd and 5th year returns: 28.52%, 18.26%, 12.44%
- Launch Date: August 13, 2010
- Return after launch: 9.44%
- Assets: 1,923 crore (September 30, 2020)
- Expense ratio: 0.59% (August 31, 2020)
2. SBI ETF Gold
- 1st, 3rd and 5th year returns: 28.98%, 18.50%, 12.33%
- Launch Date: April 28, 2009
- Return after launch: 10.24%
- Assets: 1,792 crores (September 30, 2020)
- Expense Ratio: 0.50% (September 30, 2020)
3. ICICI Prudential Gold ETF
- 1st, 3rd and 5th year returns: 28.18%, 18.32%, 12.12%
- Launch Date: August 24, 2010
- Return after launch: 8.91%
- Assets: 1,676 crores (August 31, 2020)
- Expense Ratio: 0.65% (August 31, 2020)
4. Nippon India ETF Gold
- 1st, 3rd and 5th year returns: 28.66%, 18.41%, 12.35%
- Launch Date: March 8, 2007
- Return after launch: 12.01%
- Assets: 5,170 crore (August 31, 2020)
- Expense Ratio: 0.79% (August 31, 2020)
(Source: value research)
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